URA gets 11 bids for Seletar site

The Urban Redevelopment Authority (URA) has received 11 bids for the sale of a site at Seletar Road at the close of the tender on Tuesday.

The land parcel, which has a site area of over 17,400 square metres, is designated for residential housing.

The maximum permissible gross floor area is about 24,400 square metres.

The highest bid of S$123 million came from Asplenium Land. That translates to about S$5,033 per square metre.

Fragrance Global came in at a close second with a bid of S$122.1 million, followed by SP Setia International at S$115.8 million. The lowest bid came from Meadows Investment at S$88 million.

The site was launched for public tender on October 26 and has a lease period of 99 years.

Property consultancy firm CBRE Research said as this is only the second new condominium project to be built in Seletar Hills estate, it is likely to attract the middle-income households there as well as investors who are targeting the labour force in Seletar Aerospace, which will be fully completed by around 2018.

Li Hiaw Ho, executive director, CBRE Research said: “The top bid of $123.0 million reflects $468 psf/plot ratio and translates to a breakeven cost of about $800 psf.”

He said looking at the selling prices of the adjacent residential-cum-commercial project – The Greenwich – which was launched in August, Asplenium Land will be looking to launch its new development around the same price band of $950 to $1,200 psf.

“Since August, about 250 units of The Greenwich or 78 per cent have been sold,” he added.

URA said it will evaluate the bids and announce the final tender award at a later date.

Source : Channel NewsAsia – 14 Dec 2010

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